Mutual Fund Purchases…
After numerous hours of research I’ve decided to carry 4 mutual funds in My Dividend Investing Portfolio. At least for the near future. Between May 2017 and July 2017 I will be buying into these funds only a weekly basis to accumulate some assets within the portfolio.
There are a couple of reasons why I chose these funds:
(1) American Century has a low entry threshold of $250 and Pimco is $1,000. Most funds are at least $2,500. Once you’ve met the initial threshold, with the Capitol One Share Builder Plan, you only need $25 for additional investments in the American Century funds and $100 for Pimco. They also have competitive expenses and fees when compared with the other funds.
American Century High Yield Fund (ABHIX) – This is a great fund for beginners. Its historic risk is average and the returns are good. It’s currently paying a distribution yield of 5.06% at the time of this writing. It pays a steady monthly dividend. At a little over $5 per share, you can accumulate a large number of share quickly.
American Century High Yield Municipal Bond Fund (ABHYX) – Another great fund for beginners. While its distribution yield is a bit lower at 3.56%, it invests in high quality muni bonds and has a solid track record of steady returns. This fund also has extremely low management fees at .60%. It pays a monthly dividend that has been consistent over the long term.
American Century Large Cap Value Fund (AVLIX) – This monster fund is not a monthly dividend payer but we like it anyway. We felt this was a great fund given its steady growth and consistent quarterly dividend. This fund, as with many is down due to the energy sector. However, this fund offers us a great opportunity for growth. It pays a distribution yield of 2.17%. Again, for a fund of this size, the NAV is low allowing investors to accumulate large numbers of shares.
Pimco Income Fund D (PONDX) – I love this fund! It pays a monthly dividend with a distribution yield of 5.02% and offer the investor growth opportunities. It is one of the few funds that have out-performed the S & P as of late. It’s a $99 billion fund with over 6,000 investment holdings. It NAV is low allowing investors to accumulate shares quickly.